In filing for bankruptcy, Sears seeks to restructure its finances and start anew. The question is: Can its public profile be salvaged?
The retail giant, which once dominated U.S. business selling homes and everything that went in them, filed for bankruptcy to restructure $5.5 billion of outstanding debt. The filing includes the removal as CEO of Edward Lampert, who has been using personal money and the hedge fund he manages to keep the company afloat.
Sears has long been losing its luster, reporting major losses, selling off legacy brands like Craftsman, and seeing its stock price drop below $1.
Now the company is announcing its next step, including the shuttering of 142 more stores.
“The Chapter 11 process will give Holdings the flexibility to strengthen its balance sheet, enabling the Company to accelerate its strategic transformation, continue right sizing its operating model, and return to profitability,” Lampert said in a statement.